Posts tagged ‘guest post’

May 21, 2019

101 Biggest Mistakes Nonprofits Make And How You Can Avoid Them

Over the past four decades, I’ve worked with hundreds of nonprofit organizations. Those organizations were diverse in every sense: geographically, type of work, people served, institutional size, and more. Yet, despite the significant differences among those organizations, they had one major thing in common: They all made mistakes of one sort or another.

As my career advanced over the many years, I noticed that nonprofits don’t just make mistakes; they tend to make the same mistakes. Despite the passage of enormous time, I still keep seeing nonprofits making the very same mistakes, over and over again. As I’ve gotten older, I’ve become increasingly frustrated by this phenomenon.

So, when I saw a new, bestselling book from Andrew Olsen, CFRE, I was intrigued immediately. Olsen, Partner and Senior Vice President at Newport ONE, has written 101 Biggest Mistakes Nonprofits Make And How You Can Avoid Them following a year of research involving more than 100 nonprofit organizations in North America.

Olsen does more than outline 101 common mistakes. For starters, he actually highlights 108 mistakes. However, the real value of the book comes from the straightforward tips for avoiding or overcoming those mistakes. Helping Olsen with his book’s mission are 26 additional nonprofit management, marketing, and fundraising experts.

Olsen wisely groups his list of common mistakes into the following categories:

  • Organizational Leadership and Management
  • Strategy and Planning
  • Constituent Engagement
  • Special Bonus Content

Read Olsen’s book for chuckles. Read it so you won’t feel so alone. Read it for insights. Read it for helpful tips.

Below, Olsen kindly shares with us what motivated him to write the book, three key discoveries involving what he terms the “mistake loop,” and three powerful ideas to help you break the mistake loop right now. I thank him for generously sharing his insights. I hope you’ll let Andrew and me know what you think about his book, what your “favorite” mistake is, and what thoughts you have about his guest post:

 

In a single year, I traveled to 46 states and across Canada to meet with more than 100 nonprofit organizations.

In that 12-month period, I learned so much about how nonprofit organizations work, how and where power is concentrated in organizations, what many of those nonprofits do very well – and where they are most challenged.

What emerged from this listening tour of sorts was something I never expected or imagined. I learned that nearly every one of these organizations was making one or more of the same mistakes as each of the others. What I mean by that is, if one day I was in Detroit talking with a hunger relief organization, then the next day in Toronto talking with a homeless service organization, and still the next day down in Baton Rouge talking with an animal welfare organization, the strategic and operational mistakes being made in each unique organization were eerily similar.

I found mistakes of leadership, like leaders not holding themselves or their people accountable for performance. Or, I found leaders not taking decisive action to remove toxic employees, making strategy mistakes like not investing in strategic planning, or not creating and managing to concrete development plans. And I found clear fundraising mistakes, like investing heavily in donor acquisition or social media, but not being willing to invest in major gift fundraising.

What’s more, many of the organizations had been making these same mistakes day after day, month after month, year after year. I found that there were usually three reasons for this continual mistake loop:

1.  Most often, organizations simply didn’t realize what they were doing was a mistake. It’s that whole, you don’t know what you don’t know scenario.

2.  Turnover is the next culprit. So many organizations struggle with perpetual staff turnover every 12-18 months, which saps their nonprofit of any level of institutional knowledge and memory – and results in making many of the same mistakes over and over and over again.

3.  Then there’s the last driver of continual mistakes, which is the most concerning and frustrating to me. And those are the organizations and leaders who are so deeply invested in their own “expertise” that they refuse to admit that they’re actually making mistakes, and are content to continue making them simply because their egos are so sensitive that they can’t consider a situation where they might not know best.

As I continued to process what I’d learned in these 100+ meetings, I started having conversations with other fundraisers and nonprofit leaders I trust, to get a sense for how widespread this problem really was. What I found was that many of these other leaders in our space were experiencing the very same things that I had discovered!

That’s when I decided to write 101 Biggest Mistakes Nonprofits Make and How You Can Avoid Them and, more importantly, to bring together 26 other fundraisers, nonprofit leaders, and leadership experts to contribute to this insightful resource.

The goal of this book is not to stop people from making mistakes. That’s part of being human, and part of learning. However, my hope is that we’ve created a tool that individuals and organizations can use to stop making these same mistakes that are so frequently made in our sector. We already know these mistakes are costly, and sometimes even disastrous for organizations.

So, what can you do to ensure that you and your organization are not trapped in a mistake loop?

Here are just three ways you can make certain you’re not allowing your own ego and self-worth to keep you from making meaningful change to avoid the 101 common mistakes:

read more »

March 6, 2018

3 Powerful Ways to Get Your Monthly Donors to Give More

A few weeks ago, I published the post “How to Get Last Year’s Donors to Give More this Year.” Guest blogger Joe Garecht shared some great advice for increasing giving. However, the post did not specifically address the issue of monthly giving. That led to a reader comment.

Larry Little, President of Guardian Angel Basset Rescue, raised some important questions:

Our revenues are in the $300k range but approximately 30% of that comes through our monthly giving program. My question is about asking monthly donors to increase their amounts. How often should that be done? And should you segment your list and ask that segment every 18 months?”

First, I want to congratulate Little for having a robust monthly-giving program. Well done!

Second, I thank Little for inspiring this week’s post. While I could have given him a quick, brief response, I realized the topic deserves more attention and that it would likely be of interest to many of my readers. So, I invited expert Erica Waasdorp, President of A Direct Solution and author of the best-selling book Monthly Giving: The Sleeping Giant, to share her wisdom to help us better understand how to inspire greater giving from monthly supporters. I thank her for her insights:

 

It’s wonderful to see how much the focus is shifting to monthly giving, and it’s starting to really pay off for nonprofit organizations. Here are just two recent statistics from the most recent Blackbaud Luminate Online Benchmark Report:

Expanding relationships with existing supporters was the name of the game this year as we saw a 20.4% growth in sustainer revenue.”

Viewing online revenue as one great big pie, we saw a larger slice of the pie—8.4% more—coming from sustainer gifts in 2017.”

Today, I’m not going to write about how to convert your donors to give monthly. Today, I’m going to focus on how to generate more money from your existing monthly donors.

Just because they’re now giving more money than as single-gift givers doesn’t mean it ends there. Oh no! There are three ways you can actually ask your monthly donors to give more money:

1.      Ask for a monthly upgrade.

2.      Ask for an additional gift.

3.      Ask for a legacy gift.

Ask for a monthly upgrade.

People typically ask me two questions: A) How soon after a donor starts giving monthly can I ask for an upgrade? B) How often can I ask for an upgrade?

Before I address the timing questions, let me just point out that donors upgrade because they have been stewarded effectively. Totally true. And this also pertains to monthly donors. That’s why I always “hammer” on the importance of sending a hard-copy thank-you recognition letter even if the monthly donor came in online.

So let’s assume that you’ve done this part right. And let’s assume that your donor gives monthly through his or her credit card. And let’s assume that you send the donor a quarterly newsletter with some great stories and updates on how the donor’s giving makes a difference.

I’ve seen organizations that started to upgrade right away. I’ve seen organizations that started to upgrade three months after a monthly donor joined. Frankly, I think that’s just too soon. Yes, you may get some donors to upgrade when you ask, but I think you’d also come across as much greedier than you may wish to. That could alienate some supporters.

Your donor has just started to get used to giving monthly. They’re just getting acquainted with your stewardship efforts. They have just started to realize the convenience of giving this way.

You pay taxes typically once a year; you update your budget once a year, so I suggest asking for an upgraded amount once a year, ideally between 10 to 12 months after the donor gave monthly for the first time. That’s when you can make a legitimate case for the increase in cost for xyz service, and ask the donor if he can “give just a few dollars more a month” to help the children/client/animals.

And, as Joe Garecht mentioned in his earlier post, the four elements of asking monthly donors to increase their monthly gift are indeed:

read more »

%d bloggers like this: